Value Chain Fundamentals

1. Supply Chain Management An overview, for Iqra University Karachi Syed Wajih Uddin

3. Personal Profile Wajih Second Religion is Cricket! Management Accountant / Consultant by profession. ACMA, APA, CFC,M.COM, B.COM Career Highlights Vohra & Co Feb 95- Aug 96, Associate Consultant Project Accounting and MIS (internship) Ernst & Young Int’l Sep 96 – Mar 01, Audit Senior Amman and Pakistan Grant Thornton Int’l Sep 01- April 02, Supervisor Business Assurance Services Gillette May 02 – Aug 03, Customer Services Executive Gillette Sep 03 – Feb 05, Value Chain Leader Pakistan Gillette March 05 - July 05, Regional Value Chain Manager, Pakistan & South Asia Unilever, LJA, Aug 05-Present, Production Planning & Customer Services Manager (Current)

6. Why implementing a Supply Chain approach... Its all about Managing Expectations…….. Poor service Not 1st. in class Empty shelves Poor forecasting

7. Customer Service Impacted Costs Out of Control Impact of both areas on each other Too Many Orders High delivery Costs Poor Set up of Data Errors in picking / delivery Poor Delivery / Paper Work Cash Collection Impacted Poor Forecasting Incorrect Stock Levels

8. Key Operational Functions under ‘One Umbrella’ & Streamlined Supply Chain Concept Demand & Supply Planning Data Integrity Order & Query Mgmt Whousing & Delivery Invoicing & Cash Collection Stock Mgmt POS & Display CUSTOMER FOCUSSED Supply Chain is integration of our business processes and organisations around “the entire demand and supply chain” in servicing our customers and managing our inventories

9. Systems Support Demand Planning Performance Metrics Profiles Internal / External The Start Point – Collaborative Effort Process Development & Management Enablers of the Process Creates DC Demand Merchandising at store level Transit to Customer’s Stores Transit to Customer DC Product Allocation to Order EDI transaction to Company In-Stock Levels dictate a suggested order Store Receipt Customer DC Receipt Order Shipment (Company DC) Order Processing (CSC) Order Creation Store Demand Fulfillment (Customer DC) Consumer Take Away Influence Ensure Compliance at the Customer Level Impact at the Customer Level Customer Logistics Communication Internal / External Demand / Supply Execution Cycle

13. S&OP is Joint Accountability

15. S&OP PROCESS AND MEETING FLOW Category Team Meeting (CTM) Supply and Demand Reconciliation Meeting (SDR) EXCO Meeting BOARD Meeting FINANCE CONVERSION UNCONSTRAINED DEMAND INPUTS FEASIBLE SUPPLY PLAN OPERATIONAL FOREACST Demand Planning Supply&Demand Reconciliation GAP Analysis & Closure APPROVAL

17. What is Customer Service?

18. Our customer's) are not

19. NOT this

20. OR this

21. But more like this …

22. What is customer service Get the basics right … every time Exceed customer’s expectations … In a few areas …Consistently … every time Exceed customer’s expectations … In chosen areas … Consistently … every time UNDERSTAND what your customer wants … And what you can give them Business Planning CS Operations CS Strategy

26. Understand your customer The Ritz remember things about you others do not Standard sofa setting Special sofa setting

29. CCFOT? CCFOT How well we are doing Analyzed to determine the root causes & subsequent improvement actions Highlights the overall losses to our customers

33. In order to compute excess inventory, it is first necessary to determine how much FG stock is needed to achieve targeted service levels given the current supply chain. To do so, each inventory component must be evaluated. Total Current FG Inventory (by key component) Inventory being loaded, unloaded, or transported. Inventory required to cover demand uncertainty (forecast error) and supply uncertainty during lead time Inventory required to cover periods between production or replenishment Inventory required to cover demand in excess of capacity (due to seasonality, factory shutdowns, etc.) Cycle Stock Safety Stock In-Transit Pre-Build Inventory Excess Inventory Forecasting, S&OP, and Mfg. Parameters’ initiatives focus on reducing the targeted requirement by improving the underlying supply chain parameters Inventory exceeding the targeted requirements computed based on CURRENT supply chain parameters 1 Inventory Needed To Achieve Target Service Levels (given CURRENT supply chain parameters) 1 1 The supply chain parameters on which the inventory requirements are based include CURRENT forecast accuracy, forecast bias (if existent), manufacturing lead times, manufacturing deviation, transit times, deployment frequency.

34. Demand for Growth Relax terms Sell, sell, sell Customers’ power Service “no OfS!” Suppliers Pay, Pay, Pay Working Capital tends to GROW! Needs continuous discipline & priority to manage S&OP optimise demand & supply Maintain board level Priority and pressure Discipline on underlying processes

39. Logistics Support - Full Service LOGISTICS SERVICE NATIONAL DISTRIBUTION FORWARDING WAREHOUSING MANAGEMENT Company CERTIFICATION SUB - CONTRACTING CUSTOM CLEARANCE Bonded WH Factory Area INBOUND OUTBOUND External Common Stock ERP’s

41. Integrator Summary

42. Service Providers Role in Supply Chain Management 3PL/warehouse/ distribution management Event monitoring / exception management RFP, RFQ management / execution / financial service Carrier / 3PL management Supply chain reengineering Process consulting IT analysis / implementation Supply chain visibility connectivity / IT integration Knowledge management industry / supply chain Single point of contact Relationship Know-how Consulting Visibility Operational

44. Customer Marketing Why, What, How, & Who.

45. What is Customer Marketing? OUR MISSION : R evolutionalize the R elevance of our Brands at R etail Customer as a communication channel Shopping = brand experience Leverage our brands for the customer

46. Opportunity abounds…

48. Key Competencies Identified Building strategic working relationships Customer focus Facilitating change Technical/professional skills/knowledge Communication Drive for results

51. Supply Chain SWOT Opportunities Weaknesses INTERNAL EXTERNAL Strengths Threats

54. Personal Profile Nabeel BCS, MCP, ACSA, ITIL Foundation, Career Highlights Bahrain Defense force 94-96, Network Administrator Hi-Tech Business Machines Pvt Ltd, 96-98 Customer Services Manager Etech group of Companies 98 -2001 Country Manager Technical Gillette Pakistan Ltd. 2001 – 2005, A. Regional IT Manager Al Tuwairqi Group of Companies , 05- Present Group IT Manager ( KSA)

56. Future Collaborative Commerce Will Also Be Founded on Data Synchronization Benefits Source: GMA-FMI Trading Partner Alliance, Action Plan to Accelerate Trading partner Electronic Collaboration, AT Kearney Assessment, 2002 1. Common Data Standards 2. Single Item Registry 3. Item Synchronization 4. Collaborative Transaction Management 5. Collaborative Supply Chain Management 6. Collaborative Sales & Promotion Planning 7. Collaborative Insight & Product Development Time/Degree of Trust and Complexity Data Synchronization Foundation